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Egypt index waits for foreign market cues

Egypt’s main index dipped 0.3 percent in sluggish trade as buyers and sellers waited to take cues from European, US and other markets which are shuttered on Sundays. Two multi-million dollar deals on small caps, including Misr Qena Cement, inflated turnover somewhat. Without the swaps, traders said that under LE 650 million ($117 …

Egypt’s main index dipped 0.3 percent in sluggish trade as buyers and sellers waited to take cues from European, US and other markets which are shuttered on Sundays.

Two multi-million dollar deals on small caps, including Misr Qena Cement, inflated turnover somewhat. Without the swaps, traders said that under LE 650 million ($117 million) changed hands on the bourse.

A billion pounds of turnover is considered a quiet day for Egypt’s exchange.

"The volume was extremely, extremely low. If you exclude two transactions, that were swaps, it was nothing," said Hashem Ghoneim of Pyramids Capital.

El Sewedy Cables gained 4 percent, more than any other stock on the 30-company index.

Talaat Moustafa Group, Egypt’s biggest listed developer, shed 1.4 percent. The stock has lost nearly 8 percent of its value since a court ruled on June 22 to nullify a contract which granted the firm land for a key development.

"Whatever news came out does not relieve investors," said Omar Darwish of CIBC Brokerage.

The government authority that made the deal said on Sunday it had appealed the ruling. Both the company and the housing ministry have said the case would not affect the execution of the Medinaty project.